Economics 101: What Is A Tariff? | SterlingTerrell.net

Economics 101: What Is A Tariff?

What is a tariff?

In economics, a tariff is essentially a type of tax.

It is a tax on goods that are produced in a market abroad and sold in a domestic market.

In short, they are taxes on imports.

For example:

  • There might be a 5% tax on foreign cars sold in the USA.
  • There might be a 10% tax on imported cotton sold in China.
  • And there might be a tax on textiles imported and sold in Russia.